NEW BEARISH Plays
Wells Fargo - WFC - close: 26.03 change: -0.33 stop: 28.01
Why We Like It:
Our bullish play on the XLF looks like it's about to get stopped out because the banks are breaking down. After weeks of consolidating sideways a breakdown now would be pretty bearish. WFC has pulled back to support near $26.00-25.80 after forming a bearish head-and-shoulders pattern.
I'm suggesting traders open small bearish positions on WFC with a trigger at $25.75, which would be a new four-month low. The stock will probably see a oversold bounce at the 200-dma but if the market is breaking down the bounce is probably temporary. If we are triggered our first bearish target is $23.10. Our second and final target is $21.00. Remember, use small positions. The financials have proven they can be volatile over the last few months.
Entry on December xx at $xx.xx <-- TRIGGER @ 25.75 (small positions)
Change since picked: + 0.00
Earnings Date 01/27/10 (unconfirmed)
Average Daily Volume: 37 million
Listed on December 08, 2009